Marketing Objectives of Spitalfields Market - Essay Example

MARKETING PLAN Part Introduction and Objectives This report assesses the marketing objectives of Spitalfields Market, which is situated in East London. It discusses internal and external marketing audit of the market, macro-environmental factors influencing the business, level of competition, strategic issues and distribution network of the business. The study suggested that Spitalfields Market should concentrate on the following issues in order to be more successful: Modify the management’s approach of taking decisions. The existing decision making approach is time consuming and involves a lot of attention. This can damage the business in the long run, especially where prompt decision making is necessary. The huge business functions need to provide empowerment with the intention of making modifications for the betterment of the business. Focus on the geographical development of the business, particularly in the developing markets. Formulate competitive strategies for the existing rivals. Part 2 External Marketing Audit Opportunities Spitalfields can develop its market within the different regions globally, particularly the rising markets of China and India. These markets have huge growth potential of the business. It can as well start online business prospects for its clientele around the globe. The market is persistently working to develop its distribution channels and enter new markets. The political structures within the United States and the other countries such as Canada and Japan are excellent forms of government for the business. Threats One of the major threats within the industry is the aggressive competition from the established market players. The Spitalfields is not just competing in single sector or market but it competes with an extensive range of other forms of sellers (Aspers, p. 203). Their competitiveness modifies due to the diverse product types they supply. Secondly, the financial situation of the countries is the massive cause of hindrance for the clientele to reduce their shopping requirements so as to meet their standard of living. PESTLE Analysis Political Spitalfields business practices get influenced by the political scenarios of the host as well as the home regions. It is offering high wage rate to its staff due to its agreement with the union bars and it has lay down new principles for its staff regardless of the political guidelines of a state. Economic The economic scenario for Spitalfields continues to be steady as the sales of the business is in consistent with the financial system (Pappalepore et al, p. 221). The economic aspects on which the performance of Spitalfields is based are the arrangements of tax disbursement, investment and grants, complexity of moving as well as raising funds, costs of the merchandise, financial and economic guidelines and rates of exchange. Social Cultural diversity is an important factor for Spitalfields and multi-cultural workers is the key to its employee dealings. Market’s trade practices are helpful in enhancing its relations and standing with the clientele, workers and with the governments. Technological The technological development is extremely important for Spitalfields. Lately, it has started using virtual technology structure all over its business units to enhance its functions related to information technology. Environmental Business functions not just with the intention of making revenue but as well with the goal of offering benefits to everyone who is directly or indirectly associated with it (Steves, p. 78). Consequently, it has some responsibilities that should be satisfied to do extremely well in the other areas of business. Spitalfields is attempting to use all the environmental safety related programs and can be considered among the leaders with this regard. Legal The business follows some legislation to carry out its legal commitments. These legislations are about the minimum salary given to the staff, their operational time, and industrial or job-related training. The Market Spitalfields market includes an extensive range of stalls from “fashion to designer antiques and artisan shops. A visitor to the market can also expect to find independent shops, cafes, bars and award winning restaurants” (Hingley et al, p. 83). The market has a more commercial feel to it, having several chains of eateries and stylish, boutique style stores. The markets target customer is the city worker as well as tourists, along with the locals. Recently, Spitalfields achieved 65 percent increase in consumer database from its promotional activities. Distribution Analysis Spitalfields purchased the greater part of its stock directly from producers. Storehouses got deliveries from producers and transferred this merchandise for collective shipment to individual stores. This maximized goods quantity as well as handling competence (Grugulis et al, p. 201). When products reached the warehouse, they are sent directly to the sales area; a small quantity was stored in sites other than the sales area, thus decreasing receiving expenses by reducing different costs linked with multiple-phase distribution channels, which incorporate buying from distributors instead of producers; utilizing central receiving, storage, and distribution stockrooms; and storing goods in sites other than the sales area. The Competition The competition is somewhat low because the industry inflicts certain restrictions to the entry of the new businesses. The new competitors will have to act in accordance with the governmental policies in order to penetrate the markets. Moreover, the existing businesses are defended by several barriers which make it complicated for the new entrants to give some serious competition to the already established players. The entry barriers such as tax rates, high capital prerequisite, and distribution network, restrict them to compete against the major market players. Part 3 Internal Marketing Audit Strengths Spitalfields has very sturdy managerial foundation. The mainstream of its top management executives have started and excelled professionally by the business stockrooms and learned the way to do business at Spitalfields. The employee turnover rate is quite low in comparison with the other retailers operating in the industry. Spitalfields is engaged in economical endorsement and marketing practices. The low-priced approach generally lets the business to market itself through via the most useful “word of mouth techniques which helps it save great fortune” (Dobson, p. 105) that it would have spent on its promotional activities. It presents extensive range of national as well as global trademarks of commodities at cut-rate. The market’s policies are always up to date to assist its workers, administration, and clientele to run a well-organized operating structure with increased sales. Weaknesses Some of the concerns faced by Spitalfields have to be resolved for the enhancement of the business. Its extensive operations occasionally obstruct the executions of modifications on the grass root levels. Secondly, Spitalfields does little official publicity, which represents that the business is not acquiring the amount of customers that it should get in accordance with its capability. Spitalfields has very narrow focus with respect to its shops and the area it covers. Moreover, the thorough and unnecessarily detailed decision making affecting its capability to react to market situations in a prompt manner. Strategic Issues Analysis Current Marketing Objectives: The two marketing objectives of Spitalfields are ‘high sales volume’ and ‘to become the low cost operator in retail’. Market Segmentation: The Demographic segmentation for Spitalfields is huge; it caters to people from every age bracket - from children toys, to PCs, to home furnishings. Competitive Advantage: Spitalfields does have a competitive advantage from restricting markups; however, the majority of shops raise the prices on popular goods to compensate other goods with lesser margins. Part 4 Summary of External and Internal Marketing Audit Conclusively, following are some of the significant outcomes of internal and external marketing audit of the firm under lens: Strengths: Strong selling approach, diverse offerings, and business policies. Weaknesses: Massive business system, unnecessary detailed decision making, and weak marketing activities. Opportunities: Global expansion, online retailing, and governmental constancy. Threats: Economic situation. Works Cited Aspers, Patrick. Markets. Polity, 2011. Dobson, Paul. ‘4 Relationship between buyer and seller power in retailing: UK supermarkets’. Cases in European Competition Policy. 15.5 (2009), 100-127. Grugulis, Irena, Ödül Bozkurt, and Jeremy Clegg. ‘No place to hide’? The realities of leadership in UK supermarkets’. Retail work. Palgrave: Houndsmill. 11.4 (2011), 193-212. Hingley, Martin. Adam Lindgreen, and Michael Beverland. ‘Barriers to network innovation in UK ethnic fresh produce supply’. Entrepreneurship and Regional Development, 22.1 (2010), 77-96. Pappalepore, Ilaria, Robert Maitland, and Andrew Smith. ‘Exploring urban creativity: visitor experiences of Spitalfields, London’. Tourism Culture & Communication. 9.3 (2010), 217-230. Steves, Rick. Rick Steves Great Britain 2013. Avalon Travel Publishing, 2012. Read More